* Palm sees sharpest daily rise in nearly one month
* Weaker ringgit, stronger related oils support – traders (Updates with closing prices)
By Emily Chow
KUALA LUMPUR, Jan 29 (Reuters) – Malaysian palm oil futures rose more than 1 percent on Monday evening, its sharpest daily gain since the start of the year, on expectations that demand will recover and on a weaker ringgit MYR= , the tropical oil’s currency of trade.
Palm oil prices had been weighed down last week as the ringgit strengthened after the central bank raised interest rates. stronger ringgit usually makes palm oil more expensive for holders of foreign currencies and reduces demand. The currency however fell 0.3 percent against the dollar at 3.8790 in the evening.
The benchmark palm oil contract for April delivery 1FCPOc3 on the Bursa Malaysia Derivatives Exchange was up 1.4 percent at 2,519 ringgit ($649.39) a tonne at the close of trade, its sharpest gain since Jan. 3.
Trading volumes stood at 27,261 lots of 25 tonnes each at the end of the trading day.
Expectations of stronger exports is supporting the market, said a trader from Kuala Lumpur.
“We’re expecting to see smaller negative growth,” he said, referring to cargo surveyors’ export data scheduled for release on Wednesday.
Palm oil shipments from Malaysia during Jan. 1-25 fell about 7 percent versus the corresponding period last month. The drop is weaker compared with the Jan. 1-20 period, which saw declines of 13-16 percent. PALM/ITS PALM/SGS
Expectations of shrinking stockpiles and gains in competing vegetable oils such as soyoil also supported palm, another trader said.
Stock levels in Malaysia rose to an over two year high of 2.7 million tonnes at end-December, but is forecast to decline from those levels as output eases in January in line with seasonal trend. MYPOMP-CPOTT MYPOMS-TPO
Palm oil prices track movements in other related edible oils, as they compete for a share in the global vegetable oils market.
The March soybean oil contract BOcv1 on the Chicago Board of Trade rose 0.4 percent, while the May soybean oil on the Dalian Commodity Exchange DBYK8 was up 0.4 percent.
In other related edible oils, the Dalian May palm oil contract DCPK8 also edged up 0.5 percent.
Palm, soy and prices as of 1043 GMT Contract
Low High Volume MY PALM OIL
250 MY PALM OIL
965 MY PALM OIL
14122 CHINA PALM OLEIN MAY8
5208 5264 258684 CHINA SOYOIL
5782 5832 271988 CBOT SOY OIL
32.93 +0.14 32.84 32.97
6747 INDIA PALM OIL
JAN8 562.30 -0.10 561.80 564.8
214 INDIA SOYOIL
752.8 +5.80 749.5 754.4
20970 NYMEX CRUDE
66.12 -0.02 66.04 66.46 114503 Palm oil prices in Malaysian ringgit per tonne CBOT soy oil in U.S. cents per pound Dalian soy oil and RBD palm olein in Chinese yuan per tonne India soy oil in Indian rupee per 10 kg Crude in U.S. dollars per barrel ($1 = 3.8790 ringgit) ($1 = 63.5400 Indian rupees) ($1 = 6.3268 Chinese yuan)
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